BRUSSELS, Belgium, November 5, 2004 (ENS) - Fear
of dioxin contamination in European foods spread today on reports
that Dutch potato by-products tainted with the cancer causing chemical
had been sold to farmers in the Netherlands, Belgium, and Germany.

More than 160 farms have been closed in the Netherlands
and Belgium after dioxin was found in dairy products. All of those
farms reportedly had received shipments of animal feed which contained
potato by-products from Canadian frozen potato chip fries manufacturer
McCain that were contaminated with dioxin.

McCain, which has launched an investigation,
sells its potato peels for use in animal feed. The company said its
own frozen foods products are not tainted.

McCain's office in the Netherlands says its fries
and other potato products contain "none" of the dioxin contaminated
peels. Because the cattle fodder material in its factories is "strictly
separated" from other product flows, it is impossible that potatoes
intended for human food have been contaminated.

After the discovery of dioxin contaminated potato
by-products in the Netherlands, the European Commission has been co-ordinating
the tracing of the chain of deliveries through the European Rapid
Alert System for Food and Feed.

Dutch cows may have been fed potato by-products
contaminated with dioxin. As a result, all movement of animals from
162 farms in the Netherlands, eight in Belgium and three in Germany,
which received the animal feed, has been blocked by European authorities.
The national authorities of the member states concerned are currently
tracing the food chain.
"Consumer health and safety is not called into question at present,"
the Commission said.

Health Commissioner David Byrne said today, “Member
state authorities and the Commission are co-operating closely to ensure
that safety of consumer is not jeopardized. Together we will act swiftly
yet responsibly. So far, our system of traceability and alert notifications
is working well. It is vital that the confidence of the consumer in
our food chain is maintained.”

Tracing the products through the food chain has
revealed that the Dutch branch of McCain used so-called potato separator
clay from a German company to separate high quality potatoes from
lower quality ones. This clay bath was found to be contaminated by
dioxins and appears to have in turn contaminated the potato peels,
used for animal feeding.

Movement of animals from the farms that have
obtained the animal feed have been temporarily blocked by national
authorities. Sampling and analysis of the potato by-products delivered
to the farms as well as of the farms’ products of animal origin
is ongoing.

Results should disclose in the coming days whether
restrictions on some farms can be lifted.

Meat and dairy products from affected livestock
would be withdrawn from sale, officials said.

So far, analysis of the Dutch company’s
potato products intended for human consumption indicates that they
do not contain unacceptable levels of dioxin, the Commission said.

The Commission has asked for the distribution
list of the German clay company to verify whether more food operators
purchased the clay to separate foods.

In addition, the Commission has requested
all 25 European member states to investigate whether separation processes
using clay are current practice within their territories.